Showdown Looms: NYC and Federal Gov’t Clash Over Congestion Pricing

New York and the federal government are on a collision course over congestion pricing, with a deadline less than a month away and no sign either side is backing down.

The Federal Highway Administration (FHWA) sent New York transportation officials a letter stating that the state must shut down its congestion pricing program by March 21. However, Governor Kathy Hochul and MTA CEO Janno Lieber made it clear that New York isn’t turning off the cameras without a court order.

“We’re not done. We are in court,” Hochul said at Wednesday’s MTA board meeting. “You may have asked for orderly cessation, but I will propose something in the alternative: orderly resistance, orderly resistance.”

This fight started when Sean Duffy, the new U.S. Transportation Secretary under President Trump, pulled New York’s federal approval to run the program. New York responded with a lawsuit, and now both sides are gearing up for a legal and political battle.

“We’re not turning them off,” Lieber said when asked about the toll cameras. “We have an approval that is valid and in effect, and we’re not turning them off absent a court order.”

Congestion pricing charges drivers to enter parts of Manhattan, aiming to cut traffic and raise money for public transit. In its first month, the program brought in $49 million, putting it on track to hit its $500 million goal for the year. MTA says traffic is down, commutes are faster, and businesses in the area see more foot traffic and higher sales.

But not everyone is sold. Polls show New Yorkers are split — some love it, others hate it. Drivers from the outer boroughs and New Jersey say it’s unfair, while residents of Manhattan and Brooklyn mostly support it.

Now, the clock is ticking. FHWA says the program must end by March 21, but Hochul and the MTA are digging in. A high-stakes fight between New York and Washington is coming fast, and neither side looks ready to blink.